DRAM And NAND Prices Fall

[SteelCrysis]

https://www.tomshardware.com/news/wester...37985.html

Western Digital told shareholders this week that it plans to delay the deployment of capital equipment and reduce wafer starts to reduce its output by 10-15 percent for CY19. The move follows a report claiming SSD prices could fall by as much as 50 percent in 2019 as manufacturers outside of Western Digital continue to increase their output, switch to denser storage technologies and contend with increasingly hostile trade environments.
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Declining SSD prices can be great for consumers. We're finally reaching the point where it might be feasible never to buy another HDD. But these falling prices could have significant effects on companies like Western Digital, which announced yesterday that its revenue and operating income fell to $5 billion and $705 million, respectively in the most recent fiscal quarter, compared to the $5.2 billion in revenue and $905 million in operating income from the previous year.
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But the looming trade war isn't the only problem; supply and demand are too. Western Digital CEO Stephen Milligan said on the earnings call:

"This softening demand, in combination with increased flash supply, has led to a market imbalance resulting in a deteriorating near-term flash pricing environment. In response to these conditions, we are making an immediate reduction to wafer starts and delaying deployment of capital equipment. These actions will reduce our wafer output beginning in fiscal Q3 2019. The goal of these actions is to better align our output with the projected global demand for flash. The duration of the planned output reduction will depend upon market conditions and will not impact our ability to meet customer commitments nor will it impede our ability to deliver the most innovative and cost-competitive solutions to the market."